Puerto del Rosario approves up to 50% corporate tax cuts

New tax‑benefit framework

The City Council of Puerto del Rosario has initially approved an amendment to the fiscal ordinance governing the Economic Activities Tax (IAE) to introduce tax reductions of up to 50 %. The revised ordinance establishes four main incentive lines:

• 50 % reduction for the start‑up of a new activity.
• Up to 50 % reduction for the creation of permanent (indefinite‑term) jobs.
• 30 % reduction for investments in renewable‑energy installations or electric‑vehicle charging points, provided the facilities are approved by the competent authority.
• 50 % reduction for activities declared of special municipal interest (social, cultural, historic‑artistic or employment‑promotion reasons).

Details of each incentive

• New entrepreneurs and professionals: a 50 % discount on the tax quota for the first five years after the legally required exemption period.
• Companies expanding permanent staff: progressive discounts based on the number of new hires:
  • 20 % for an increase of 1–5 workers,
  • 35 % for an increase of 6–10 workers,
  • 50 % for an increase of more than 10 workers.
• Renewable‑energy or EV‑charging projects: a flat 30 % discount, contingent on official homologation.
• Special‑interest activities: a 50 % discount for those classified by the Council as socially, culturally, historically or employment‑wise valuable.

Supporting investors and wealth creation

According to the municipal press release, all incentives must be requested by the taxable entities and will be applied after the mandatory state‑level deductions have been taken into account.

“With this amendment we send a clear message to our entrepreneurs and business owners: the Puerto del Rosario City Council is their ally,” said Mayor David de Vera.

“These incentives are not an expense, but a strategic investment in the future of our municipality, rewarding those who risk their capital to generate wealth and, above all, to create stable, quality jobs,” De Vera added.

Economy and Finance Councilor Juan Manuel Verdugo highlighted that the measure creates “a rigorous, transparent fiscal incentive system that complies with current legislation.”

“Each of these discounts addresses a concrete need: supporting newcomers, rewarding hiring, driving the ecological transition, and protecting activities of social or cultural value,” Verdugo affirmed.

Next steps

Following the initial approval, the amendment will undergo a 30‑day public information period during which interested parties may submit comments or objections. If no objections are received, the ordinance will be deemed final and will be published for implementation.